Tuesday, December 3, 2013

Dyer v. National By-Products Inc. case brief

Appellant employee sought review of an
order of the Iowa District Court for Polk County, which granted
appellee employer's motion for summary judgment in the employee's
action for breach of an oral contract.

CASE FACTSThe employee was injured in a
work-related accident and after returning to work was laid off. The
employee filed an action against the employer alleging a breach of an
oral contract. The employee claimed that his forbearance in
litigating a personal injury claim that he in good faith believed he
had was made in exchange for a promise from the employer that he
would have lifetime employment. The employer filed a motion for
summary judgment claiming that there was no genuine factual issue and
the trial court granted the motion.

DISCUSSION

On appeal, the court reversed the
decision and held that forbearance of a claim that proved to be
invalid was sufficient consideration if the forbearing party believed
in good faith that the claim was valid.

The court held that summary
judgment was improper because a question of material fact existed as
to whether the employee's forbearance was made in good faith.

The
court remanded the case for determination of that issue.

CONCLUSION
The court reversed the grant of summary judgment to the employer
in the employee's action for breach of an oral contract and remanded
the case for determination of whether the employee's forbearance to
assert his personal injury claim was in good faith.

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